RECORD OF PROCEEDINGS

IN THE MATTER OF:	DOCKET NUMBER: BC-2021-00845

XXXXXXXXXXXXX	COUNSEL: NONE
	
	HEARING REQUESTED: NO 

APPLICANT’S REQUEST

Her election of benefits under the Reserve Component Survivor Benefit Plan (RCSBP) be changed.  Specifically, to decline participation in the RCSBP.

APPLICANT’S CONTENTIONS

Survivor Benefit Program (SBP) premiums are being deducted from her retired pay due to an error made in her records and inadequate counseling she received prior to her initial election.  The SBP specialist failed to brief her that her spouse must sign the form with a notary witness prior to submission.  Consequently, she was not aware that her RCSBP election was incorrect. She completed the required forms for retired pay on 6 August 2020, and indicated she previously elected immediate coverage based on her RCSBP election in 2006.  She did not realize the impact until DFAS started withdrawing RCSBP premiums from her retired pay.

The applicant’s complete submission is at Exhibit A.

STATEMENT OF FACTS

The applicant is a retired Air Force Reserve lieutenant colonel (O-5).

On 16 August 2005, ARPC/DPTT sent the applicant the standard Notification of Eligibility for retired pay (20-year letter) informing her that she has completed the required years under the provisions of Title 10 United States Code, Section 12731 (10 U.S.C § 12731), and entitled to retired pay upon application prior to age 60.  In addition, she was eligible to participate in the RCSBP and should receive detailed RCSBP information by certified mail within 60 days.  The RCSBP information included instructions to reply within 90 days of receipt.  

On 2 February 2006, according to Reserve Component Survivor Benefit Plan Election Certificate, provided by the applicant, she elected Option C, Immediate Annuity for spouse and children, based on full retired pay.

On 1 August 2012, according to Reserve Order EK-2387, dated 9 February 2012, the applicant was assigned to the Retired Reserve Section and placed on the Air Force Reserve Retired List.  

On 19 March 2020, according to DD Form 2656, Data for Payment of Retired Personnel, the applicant selected Option C, Previously elected or defaulted to immediate RCSBP Coverage.  

For more information, see the excerpt of the applicant’s record at Exhibit B and the advisory at Exhibit C.

APPLICABLE AUTHORITY

10 U.S.C. § 1448(a)(2)(B).  “Participants in the plan.  The Plan applies to the following persons, who shall be participants in the Plan: … Reserve-component annuity participants.  A person who (i) is eligible to participate in the Plan under paragraph (1)(B), and (ii) is married or has a dependent child when he is notified under section 12731(d) of this title that he has completed the years of service required for eligibility for reserve component retired pay, unless the person elects (with his spouse's concurrence, if required under paragraph (3)) not to participate in the Plan before the end of the 90-day period beginning on the date on which he receives that notification.”  

DoD 7000.14-R, Volume 7B, paragraph 5408.  “The Government does not subsidize the cost of providing RCSBP coverage under the immediate or deferred annuity option, but the members and beneficiaries who potentially will benefit from the coverage share the cost.   The cost to the retiree, known as the Reserve Component Premium, is in the form of an additional deduction from his or her retired pay beyond the Standard Premium.  The RCSBP, unlike SBP, requires a reduction in the survivor annuity.  That reduction, known as the Survivor’s Annuity Premium Deduction, begins when the survivor begins to receive an annuity.  The Reserve Component Premium and the Survivor’s Annuity Premium Deduction increase at the same time and by the same percentage that retired pay increases by cost-of-living adjustments.”  

AIR FORCE EVALUATION

ARPC/DPTT recommends denying the application. RCSBP extends eligibility, of the Survivor Benefit Plan (SBP), to Reserve Component members, who would otherwise be eligible to receive retired pay, except they have not yet reached retirement age. RCSBP allows members to provide an annuity based on their retired pay, to qualified survivors, upon the death of a member.  Members of the Air Force Reserve and Air National Guard are sent a certified letter of their eligibility for RCSBP and an explanation of the program and guidance on making elections.

Prior to 1 January 2001, a member was only enrolled when they elected to do so within 90 days of acknowledging receipt of PS Form 3811, Domestic Return Receipt. The applicant completed 20 satisfactory years on 25 March 2005, and acknowledged she received notification of RCSBP eligibility and election materials in late 2005. The applicant returned DD Form 2656-5 Reserve Component Survivor Benefit Plan Election Certificate, on 4 February 2006, within the 90-day timeframe prescribed by law, selecting Option C, Provide an immediate survivor annuity beginning on the day after death for spouse and child, effective 2 February 2006. The applicant elected maximum coverage therefore, written spousal concurrence was not required to complete a valid election for RCSBP coverage.

On 19 March 2019, the applicant completed her final SBP election.  Service members that elect coverage within 90 days of being notified of their eligibility for a non-regular retirement are not eligible to make a new election when they apply for retired pay and therefore, the applicant selected that she previously elected RCSBP coverage Option C, Provide an immediate survivor annuity beginning on the day after death for spouse and child, in block 33 of the DD Form 2656. Service members who qualify for non-regular retired pay are not billed for this program until they reach age 60 or their reduced pay age, when they start drawing retired pay. If RCSBP Option C is elected, there is a Reservist portion cost added to the basic cost to cover the additional benefit and assured protection had the applicant died prior to reaching her pay age.  Therefore, the applicant must now pay for the Reserve Component Cost in addition to the SBP premium cost. The Reserve Component Cost is the amount currently taken from her retired pay, used to pay for the premiums incurred prior to obtaining eligibility for non-regular retired pay. The applicant will have premiums withheld from her retired pay account each month she has paid for the coverage provided from the date of election, 2 February 2006, until the applicant’s retirement date, 6 August 2020.

The applicant may elect to discontinue participation in SBP by submitting a DD Form 2656-2, Survivor Benefit Plan Termination Request, only during the period that is more than 2 years, but less than 3 years, after the first date of entitlement to receive retired pay. Once participation discontinues under this provision, the following applies: The cost of RCSBP coverage, for previous participation, will continue to be deducted from retired pay. There will be no refund of premiums, no benefits will be paid in conjunction with previous participation and the applicant may not resume participation for any category of beneficiary.

The complete advisory opinion is at Exhibit C.

APPLICANT’S REVIEW OF AIR FORCE EVALUATION

The Board sent a copy of the advisory opinion to the applicant on 3 June 2021, for comment (Exhibit D), but has received no response.

FINDINGS AND CONCLUSION

1.  The application was timely filed.

2.  The applicant exhausted all available non-judicial relief before applying to the Board.

3.  After reviewing all Exhibits, the Board concludes the applicant is not the victim of an error or injustice.  The Board concurs with the rationale and recommendation of ARPC/DPTT and finds a preponderance of the evidence does not substantiate the applicant’s contentions. Therefore, the Board recommends against correcting the applicant’s records.

RECOMMENDATION

The Board recommends informing the applicant the evidence did not demonstrate material error or injustice, and the Board will reconsider the application only upon receipt of relevant evidence not already presented.

CERTIFICATION

The following quorum of the Board, as defined in Air Force Instruction (AFI) 36-2603, Air Force Board for Correction of Military Records (AFBCMR), paragraph 1.5, considered Docket Number BC-2021-00845 in Executive Session on 22 July 2021:

, Panel Chair
, Panel Member
, Panel Member

All members voted against correcting the record.  The panel considered the following:

Exhibit A:	Application, DD Form 149, w/atchs, dated 20 October 2020.
Exhibit B:	Documentary Evidence, including relevant excerpts from official records.
Exhibit C:	Advisory, ARPC/DPTT, dated 17 May 2021
Exhibit D:	Notification of Advisory, SAF/MRBC to Applicant, dated 3 June 2021.

Taken together with all Exhibits, this document constitutes the true and complete Record of Proceedings, as required by AFI 36-2603, paragraph 4.11.9.